Healthcare 2025: Personalization, Without PCP

Greg Caressi

Senior Vice President, Healthcare & Life Sciences, Frost & Sullivan

18th ANNUAL MEDICAL DEVICES 2013:

A Frost & Sullivan Executive MindXchange

18th ANNUAL MEDICAL DEVICES 2013:

A Frost & Sullivan Executive MindXchange

Greg Caressi, Senior Vice President, Healthcare & Life Sciences, Frost

& Sullivan

Healthcare 2025: Personalization, Without PCP

Key Take-Aways:

• Framework for the impact of the widening world of stakeholders in the

future healthcare system

• Roadmap for the coming alternative to primary care as we have known it

• Insight on segmentation, stratification and individualization that will

change private payer plans

#DEV13

Business Process Change is the Biggest Challenge

Facing Healthcare Providers

The adoption of the ACO model is changing the way hospitals look at their

structure, roles, activities, how they measure themselves

“What was once a payment is now a cost. What was once a cost is now a

potential savings.”

Physician alignment

Data is everything (and

everything needs to be

data-driven)

Data integration

Democratization of data

Risk-sharing for everyone

– Look in the mirror

Mobility + security of

information

Core competencies vs

outsourcing

Leveraging lower-skilled

clinical personnel and

technology to achieve

more touch at lower cost

Patient engagement –

Can the interaction gap be

closed?

Is this revolution, or evolution with an accelerated adoption curve?

What changes will challenge healthcare providers in this new model?

Do You Have Strategies To Deal With These Key Issues?

Source: Frost & Sullivan analysis.

SCALABILITY

FRAGMENTATION – Are you part of the

problem or part of

the solution?

TECHNOLOGY APPS SOLUTIONS

DATA INTEGRATION ANALYTICS ACTION

Volume Value

The shift toward payments based on quality + cost over procedure-based

reimbursement will change the way medical technologies are evaluated and

purchased

Decision by committee

Slower adoption of new

technologies – especially large

capital purchases?

Revolution versus evolution?

Integration of information,

analytics – holistic view of

patient, eliminate administrative

waste and unnecessary care

Cost of adoption, impact on

workflow

New pricing models, sharing of

risk

Realities of the New Market

Fail Fast

Product and tactical sales strategies are being evaluated for

quick return, resource limitations constrain a company’s ability

to support lagging business models.

U.S. from Exporter to

Importer of Med Tech

Currently one of few the markets where the U.S. has a

significant trade surplus with the rest of world, shifts seen in

other industries could play out as low cost manufactured

products supplant products currently made in the United States.

Deemphasize the Clinician

Deemphasize Products

Purchase decisions are moving away from clinicians to hospital-

based administrators and committees. . Most existing sales

team structures and messaging were developed for a market

that is quickly fading away.

As products increasingly become commoditized and the tax

burden is placed on medical product sales, companies are

increasingly looking to build revenue mix from service, software,

enhanced support, and other offerings.

Healthcare Without PCPs, Or At Least a Changing Role

65,800 = Projected shortage of

Primary Care Physicians in

2025*

Traditional roles of the PCP

Single holistic view of the patient

Longitudinal tracking of patient

record

Treat wide range of minor

conditions, ailments

First level screening, test and

diagnose

Refer to specialist

Personal relationship with patient,

family

Focus for behavior change due to

factors above

*

Meanwhile the world has changed

Social

networks

Smart

phones

IBM’s

Watson

Retail

clinicsSkype

Wellness

Mobile

health

Doctor

Google

$80 HD

cameras

EHR

Job

mobility

Patient

portals

Consum-

erism

TelehealthRemote

monitoring

Provider

consolidation

Changing Consumer Attitudes Towards Care Delivery

76% of patients say access to care is more

important than physical human contact

with their care provider

70% of patients would trust an automated

device to provide a diagnosis and

determine whether or not they needed

to see a doctor

74% of patients are comfortable having

their health records available in the

cloud, assuming adequate security

(excluding Germany and Japan)

According to a recent survey of 6,000 people in 10 countries (sponsored by Cisco)

But…

87% of patients would trade off time, money

and/or convenience to be treated at a

perceived leading healthcare provider,

and gain access to trusted care and

expertise

Designated PCPs Not Needed for All

Consumers have high levels of trust in

technology tools

People expect more control over time and

want convenience, avoid waiting

Changing attitudes towards personal

interaction

Business model innovation among hospitals and care plans will require reducing

care costs and testing new models

For at least some portion of the population, a single

assigned PCP is not seen as a have-to-have

No More Employer Contracted Health Plans?

Factors driving change in healthcare coverage

Rising cost of care

Development of insurance exchanges

One size fits all is not consumer friendly

Micro segmentation drives personalization in choice

“Survey: Half Of Employers Will Stop Offering Health Coverage, Give Workers Cash For Plans Instead”

“Sears, Olive Garden To Offer Employees Money To Pay For Health Care”

“Employee Healthcare: More Firms Trading With Doctors, Dentists, Pharmacies”

What Will The Future Look Like?

Healthcare increasingly data driven and

customized

Healthcare more like other service

industries

Globalized care delivery

New care models focused on

collaboration, information

exchange/awareness, achieving health

outcomes, especially with chronic

disease care

Increased development of standards of

care and incentives to adopt them

Personalization of treatment,

interaction, coverage

Increased patient engagement to

manage disease via remote monitoring

and mobile apps

Increased leveraging of tech and non-

physicians

More “generics” – technologies providing

same value at lower price, stripped down

feature sets

Increased use of analytics to define care

pathways

Join Us

The 19th Annual Medical Devices 2014: A Frost & Sullivan Executive

MindXchange takes place March 9-11, 2014 at the Loews Coronado Bay

Resort and Spa in San Diego, Calif.

Participants will gain insight into the future of medical technology and

healthcare delivery as they engage with other seasoned medical device

executives driving the future of healthcare, as well as their company’s

innovation and business strategy.

www.frost.com/dev

Contact

Britni MyersHealthcare & Life Sciences

(+1) 210.477.8481

Britni.myers@frost.com